The June 30 deadline date is approaching but a majority of the 11 million Italian employees concerned has not yet decided what to do with their TFR ("trattamento di fine rapporto", elaborated in 1982 to create a payment deferred in time, a type of State-guaranteed forced savings). The new law forces employees from the private sector to choose between leaving it to the company as before and investing it in a pension fund (see our story 061085.) (Ref. 070545)
The current TFR corresponds to 6.91% of the annual gross salary for every year worked, plus a return covering 75% of the inflation, plus 1.5% guaranteeing a capital to the employee. For every change of company, the employee can take it and decide of what to do with the money, whereas if he/she chooses today a pension fund he/she will have to wait until retirement age to get the total allowance. On the other hand, if the decision to leave the TFR to the company is reversible (the employee will a
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